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Question - Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:
Standard Quantity or Hours
Standard Price or Rate
Standard Cost
Direct materials
6.80 pounds
$3.00 per pound
$20.40
Direct labor
0.50 hours
$11.00 per hour
$5.50
During the most recent month, the following activity was recorded:
1. 22,900.00 pounds of material were purchased at a cost of $2.70 per pound.
2. All of the material purchased was used to produce 3,000 units of Zoom.
3. 1,400 hours of direct labor time were recorded at a total labor cost of $18,200.
Required -
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
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